How much credit card debt does the average person have?

Asked by: Maymie Miller  |  Last update: September 7, 2022
Score: 4.1/5 (51 votes)

If you have credit card debt, you're not alone. On average, Americans carry $6,194 in credit card debt, according to the 2019 Experian Consumer Credit Review.

What is the average credit card debt in 2020?

The average credit card balance among consumers was $5,221 as of Q3 2021. That's 2.1% lower than the 2020 average balance of $5,315.

What is the average credit card per person?

The average American have 4 credit cards, according to the 2019 Experian Consumer Credit Review.

How much debt does an average person have?

How much money does the average American owe? According to a 2020 Experian study, the average American carries $92,727 in consumer debt. Consumer debt includes a variety of personal credit accounts, such as credit cards, auto loans, mortgages, personal loans, and student loans.

What is considered a lot of credit card debt?

If your total balance is more than 30% of the total credit limit, you may be in too much debt. Some experts consider it best to keep credit utilization between 1% and 10%, while anything between 11% and 30% is typically considered good.

What Is the Average Credit Card Debt in the US by Age

18 related questions found

At what age should you be debt free?

“Shark Tank” investor Kevin O'Leary has said the ideal age to be debt-free is 45, especially if you want to retire by age 60. Being debt-free — including paying off your mortgage — by your mid-40s puts you on the early path toward success, O'Leary argued.

What is considered a lot of debt?

Debt-to-income ratio is your monthly debt obligations compared to your gross monthly income (before taxes), expressed as a percentage. A good debt-to-income ratio is less than or equal to 36%. Any debt-to-income ratio above 43% is considered to be too much debt.

Are most people in debt?

Even though household net worth is on the rise in America (at $141 trillion in the summer of 2021)—so is debt. The total personal debt in the U.S. is at an all-time high of $14.96 trillion. The average American debt (per U.S. adult) is $58,604 and 77% of American households have at least some type of debt.

Who is the most in debt person?

Former Société Générale rogue trader Jérôme Kerviel owes the bank $6.3 billion.

What is a high credit card limit?

What is a high-limit credit card? A high-limit credit card typically comes with a credit line between $5,000 to $10,000 (and some even go beyond $10,000). You're more likely to have a higher credit limit if you have good or excellent credit.

What is a good credit card limit?

A good credit limit is above $30,000, as that is the average credit card limit, according to Experian. To get a credit limit this high, you typically need an excellent credit score, a high income and little to no existing debt. What qualifies as a good credit limit differs from person to person, though.

How many credit cards are too much?

Owning more than two or three credit cards can become unmanageable for many people. However, your credit needs and financial situation are unique, so there's no hard and fast rule about how many credit cards are too many. The important thing is to make sure that you use your credit cards responsibly.

What percentage of the population is debt free?

And yet, over half of Americans surveyed (53%) say that debt reduction is a top priority—while nearly a quarter (23%) say they have no debt.

Who has the most credit card debt?

Alaska had the highest average credit card debt at $6,617 per person; Iowa had the lowest at $4,289. Americans in the 60th to 79.9th annual income percentile were most likely to carry debt; approximately 57% of individuals in this income bracket had credit card debt.

What generation has the most debt?

Here's how much debt Americans have at every age
  • Gen Z — Average debt: $16,043. Gen Zers, who range from ages 18 to 23, hold an average of $16,043 in debt. ...
  • Millennials — Average debt: $87,448. ...
  • Gen X — Average debt: $140,643. ...
  • Baby boomers — Average debt: $97,290. ...
  • How to tackle your debt.

What percent of US homes have no mortgage?

A: 37% of U.S. households no longer have a home mortgage to pay, according to a Zillow data analysis.

Is 15k a lot of debt?

It's not at all uncommon for households to be swimming in more that twice as much credit card debt. But just because a $15,000 balance isn't rare doesn't mean it's a good thing. Credit card debt is seriously expensive. Most credit cards charge between 15% and 29% interest, so paying down that debt should be a priority.

Is it normal to be in debt?

Debt is normal – but that doesn't mean you shouldn't do something about it. There were a variety of debts featured in the report. Overdrafts, mail order bills, hire purchase agreements, the average household seems to owe a lot of money to many different lenders.

How do I pay my debt if I live paycheck to paycheck?

Below are 12 steps to pay off debt when you live paycheck to paycheck.
  1. Get On The Same Page. ...
  2. Write A Budget. ...
  3. Identify Wants Vs. ...
  4. Stop Comparing Yourself To Others. ...
  5. Change Your Money Habits. ...
  6. Minimize Monthly Expenses. ...
  7. Build Up An Emergency Fund. ...
  8. Total Up Your Debt.

How much do I need to retire if house is paid off?

One rule of thumb is that you'll need 70% of your pre-retirement yearly salary to live comfortably. That might be enough if you've paid off your mortgage and are in excellent health when you kiss the office good-bye. But if you plan to build your dream house, trot around the globe, or get that Ph.

What age mortgage paid off?

While the average age borrowers expect to pay off their mortgage is 59, the number of survey participants who have no idea when they will pay it off at all stood at 16%. In 2019, 9% of those asked didn't know and in 2020, 11% gave this answer.

Is it OK to have some credit card debt?

The simple answer is that having minimal credit card debt is the best policy. The more complex answer: “it depends.” How much credit card debt is okay for one person may not be okay for the next – it all depends on your financial situation, your spending habits and your overall credit limits.